Rescission Agreement: Definition, Terms, Example
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What is a Rescission Agreement?
A rescission agreement is a contractual agreement between parties that allows the contract in contention to be canceled. This agreement can often be combined with a release agreement where one or both parties are absolved of liability related to the agreement. Rescission may take place if there has been misrepresentation or a mistake has been made by one or more parties.
A rescission agreement can be unilateral when one party backs out of the agreement within their rights, or it can be a mutual decision between both or all parties involved. There are some clauses in agreements that allow borrowers specific periods of time to reconsider their contract and are allowed to rescind as long as it's done before the end of the specified period.
Common Sections in Rescission Agreements
Below is a list of common sections included in Rescission Agreements. These sections are linked to the below sample agreement for you to explore.
Rescission Agreement Sample
| A. | On May 1, 2010, the Parties effected a Stock Purchase Agreement (the “SPA”)
whereby WellTek purchased 51% of outstanding common stock of WellCity (the “WellCity
Shares”) from George by WellTek exchanging 14,500.000 WellTek common shares (the
“WellTek Shares”) for the WellCity Shares (the “Transaction”); |
||
| B. | At the time of the closing of the Transaction, WellCity was controlled by
George; |
||
| C. | The Parties desire to rescind the Transaction and return the ownership of
WellCity to the state it was in immediately prior to the Transaction as if the
Transaction never closed (the “Rescission”); |
||
| D. | The Parties desire to settle and resolve all potential claims, legal actions,
judgments, disputes, claims, causes of action, and appeals against each other, known or
unknown, by entering into this Rescission Agreement; and |
||
| E. | The Parties desire that this Rescission Agreement lawfully: (i) rescinds the
various business relationships between the Parties created by the SPA; (ii) rescinds
all agreements presently linking the Parties together as of the Effective Date; (iii)
provide for an orderly and amicable separation of the Parties; and (iv) compromise and
settle all disputes, if any, between the Parties. |
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If to the WellTek Parties at:
|
1030 North Orange Avenue Suite 300 Orlando, Florida 32801 Attention: Mark Szporka |
|
If to the WellCity Parties, at:
|
1616 Westgate Circle Brentwood, TN 37027 |
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| WELLTEK INCORPORATED, a Nevada corporation |
||||
| By: | /s/ Mark Szporka | |||
| Name: | Mark Szporka | |||
| Title: | CFO | |||
| WELLCITY, INC. a Tennessee corporation |
||||
| By: | /s/ Robert Bellamy | |||
| Name: | Robert Bellamy | |||
| Title: | COO | |||
| /s/ Mark Szporka | ||||
| Mark Szporka | ||||
| /s/ Randy Lubinsky | ||||
| Randy Lubinsky | ||||
| /s/ David George | ||||
| David George | ||||
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Reference:
Security Exchange Commission - Edgar Database, EX-10.1 3 c09163exv10w1.htm EXHIBIT 10.1, Viewed October 14, 2021, View Source on SEC.
Who Helps With Rescission Agreements?
Lawyers with backgrounds working on rescission agreements work with clients to help. Do you need help with a rescission agreement?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate rescission agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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